Ifm Report

5971 WordsApr 19, 201324 Pages
------------------------------------------------- CHAPTER 1: INTRODUCTION 1.1 GENERAL The balance of payments has been an important indicator of the growing economic activities in all the countries. It reflects how much a country is technically developed and competitive in the world market. Balance of payments (BOP) is the statistical record of all transactions taking place between its residents and the rest of the whole world. These transactions include payments for the country's exports and imports of goods, services, and financial capital, as well as financial transfers. The BOP accounts are prepared in a single currency, typically the domestic currency for the country concerned. Sources of funds for a nation, such as exports or the receipts of loans and investments, are recorded as positive or surplus items. Uses of funds, such as for imports or to invest in foreign countries, are recorded as negative or deficit items. Bangladesh is an emerging economy in the world. The improvement of its economy also depends on the performance of its BOP. But the noticeable point is that Bangladesh economy is experiencing disequilibrium in balance of payments due to shortsighted policy decisions, internal economic imbalances and global economic crisis. The BOP slipped into a deficit resulting in heightened risks to Bangladesh’s external position. Ultimately, the balance of payments of the country would face immense pressure, if effective and time-befitting measures are not taken to foster the flow of remittance, FDI, investment along with the import of capital machineries and intermediate goods. Based on the data analysis of different financial years along with the refutation of some significant reasons behind the disproportion and imbalance in BOP in this study we tried to give an overall economic update of Bangladesh. We also focused on some policies that can be

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